3PL Firms Lead Leasing Surge in Industrial & Warehousing Sector

Third-party logistics (3PL) firms have taken a commanding role in India's industrial and warehousing leasing, accounting for 41% of the 395 lakh square feet leased in 2024 across eight major cities. This growth marks a peak in leasing activity, driven by significant supply additions.

In a record-breaking year for industrial and warehousing leasing, third-party logistics (3PL) firms have emerged as the dominant force, securing 41% of the total 395 lakh square feet leased across eight major Indian cities in 2024, according to CBRE.

The increase in leasing activity, supported by a supply boost of 386 lakh square feet, reflects the sector's resilience amidst global economic challenges. Key contributors to this supply include Mumbai, Chennai, and Bengaluru, accounting for over half of the new space.

Looking forward, demand for in-city warehousing and quick-commerce is expected to rise, particularly in Delhi-NCR, Kolkata, and Bengaluru. As occupiers explore tier-II markets, cities like Chandigarh and Jaipur are projected to become central to warehousing expansion strategies.